Criminal Charges Weighed Against SAC

Hedge-Fund Company Has Discussed Alternatives Such as Deferred-Prosecution Agreement

By

Michael Rothfeld and

Jenny Strasburg

Updated May 20, 2013 12:13 a.m. ET

U.S. prosecutors are considering possible criminal charges against SAC Capital Advisors LP as a result of the government's insider-trading investigation of the hedge-fund firm, according to people familiar with the matter.

The move came before the company told clients Friday that it will no longer provide "unconditional" cooperation with the multiyear probe of SAC and billionaire founder Steven A. Cohen. The firm didn't tell...